NZ Winegrowers have just released their 2022 annual report, a snapshot “state of the nation” document that chairman Clive Jones says indicates that “New Zealand grape growers and wineries are looking to the future with renewed certainty and confidence”.
“An improved harvest, accessible markets, and consumers demanding more New Zealand wine than ever are huge benefits for the sector. This positive environment provides the opportunity to push ahead, ensuring we are positioned well for the future.
“Tempering this confidence are significant challenges. Inflation has returned to haunt producers and the market. Cost increases threaten industry profitability, bringing into question reinvestment critical to long-term growth. Labour availability continues to be a key challenge along with both domestic and international supply chain uncertainty.”
The big jump in the 2022 grape harvest after last year's disappointing yields had winegrowers and exporters beaming. (Image: NZME)The international appetite for New Zealand wine was stimulated by a shortfall in the 2021 vintage of 370,000 tonnes of grapes, a 19% drop on the previous year. An increase in 2022 of 43% resulted in a collective sigh of relief as many exporters scrambled to supply back orders. Export sales for 2022 were just under $2 billion, a record high.
New Zealand wine sales, on the other hand, have fallen 13% in volume over the past 18 months, with sales down to the lowest level in nearly two decades. The average value of packaged exports increased by 6%.
Rumours of sauvignon blanc’s decline are greatly exaggerated. It rose from a 74.8% share of the country’s grape crop to an even more dominant 76.5% share this year. One of the world’s most influential wine critics, Briton Jancis Robinson MW, was quoted in the annual report as hailing NZ sauvignon blanc as one of wine’s greatest commercial successes ever. "Wine professionals may be a bit snooty about its simplicity and, often, light sweetness but wine drinkers all over the world love it the minute they are introduced to it,” she wrote on her website in May.
The number of wineries rose by 13 in 2022 to a record-high 744, which shows some small measure of confidence in the future of the wine industry, and the acreage devoted to grape production rose by 3%. Predictably, most of the increased vineyard area was in Marlborough.
The average yield of grapes per hectare was 12.8 tonnes, the highest it has been in the past decade.
NZ drinkers are consuming less of our local wine, even as demand for it reaches record highs overseas. (Image: NZME) Per-capita consumption of NZ wine, which has been steadily dropping for some time, fell by a further 13.5% to 8.3 litres. Consumption per capita of all wine also fell slightly, to 17.5 litres.
The NZ industry appears to be in pretty good shape, with a solid export market and high demand for its key wines. It hasn’t had to face the body blow Australia suffered when Beijing taxed Australian wine almost out of existence in China, the country's largest export market.
NZ winegrowers still face the challenge of climate change, water availability, labour shortages and the possibility of another pandemic.
On the plus side, this country's wines continue to get better every year, thanks in no small part to vine maturity and winemaker experience. We’ve just experienced a triple treat of very good vintages (2019-20-21) that put a smile on the face of many winegrowers.
My latest picks for BusinessDesk readers are:
Investment Wine
2021 Rockburn The Art Pinot Noir, Central Otago, $99
This is a limited-edition flagship pinot noir that is delicious now but promises to age well. It's a bold, rich and quite complex red with layers of cherry, berry, floral and mixed-spice flavours that keep changing as the wine sits in the glass (decanting is recommended). Already an appealing wine, it will evolve with bottle age.
Weekend wines
Top white
2021 Sacred Hill Riflemans Chardonnay, Hawke’s Bay, $70
New ownership and rock-star winemaker Nick Picone make this Sacred Hill a winery to watch, especially in terrific vintages like 2021. This chardonnay is intense and full of energy, with grapefruit/citrus, saline, oyster shell, roasted nut and spicy oak flavours. It's a powerful wine supported by vibrant acidity, which helps to drive a lengthy finish. It will reach its full potential with at least two years in the bottle.
Top red
2020 Smith & Sheth CRU Heretaunga Syrah, Hawke’s Bay, $40
Steve Smith MW and Brian Sheth are shaking up the world of fine wine with a string of top labels from great vineyards. This syrah is dense, ripe and complex, with cassis/blackcurrant, plum, liquorice, black pepper and spicy oak flavours. It's surprisingly accessible for such a youthful and concentrated wine, although I have no doubt it will develop well with bottle age.
